Are you thinking of investing in property? This can become a great boost to your monthly income and a great long-term investment.
BUT like all investments there are risks involved so it’s important to consider all possibilities and gain as much knowledge as you can before investing.
Here are some tips, tricks and general information you should know if you want to become a landlord.
Knowledge Is Essential
By talking to experts in the field, listening to podcasts (like ours) you’ll be able to learn and grow from people in the industry off there years in experience. You’ll be able to understand processes such as preparing for your property investment, business plans, securing finance (if applicable) and letting essentials not to mention insurance.
Getting a Buy To Let Mortgage
Most people want have a pile of cash to buy there property outright, which means you’ll need a buy-to-let mortgage. Unlike a regular mortgage, in most cases you’ll need to be an existing homeowner and have a good credit score, some lenders may even have age restrictions such as being under 70 years old… not in all cases. The main difference between a regular mortgage and a buy to let mortgage is the lender will focus on the estimated rental income when deciding on how much too lend rather than your current income which is important when picking your potential property.
The Tenants
Although you may have heard this one before, we need to say it. If you pick the right property, in the right area and price it at a fair price, it’ll bring in the best tenants, which will only make things easier for you in the long term.
Stamp Duty
It’s important to note that when buying an additional property it does come with additional fees. You will be more stamp duty when owning any additional properties. We recommend using an online tool such as this one – https://www.stampdutycalculator.org.uk/?SDValue=400%2C000 – to estimate your stamp duty costs before purchasing.
Advice
Disclaimer
UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
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